As a result of missing analyst expectations for Q1 revenue and a roughly 50% decline in crypto income and trading volume compared to a year ago, Robinhood’s stock dropped 9.4% in after-hours trading.
Based on the company’s Q1 financial report, which was released on Tuesday, Robinhood saw a 47% year-on-year decline in crypto transaction revenue, going from $252 million to $134 million. Additionally, crypto trading volume plummeted 48% to $24 billion during the same time.
Robinhood (HOOD) stock dropped 9.4 percent after the company’s revenues of $1.07 billion and profits per share of $0.38 fell short of industry projections by 6.1% and 11.6%, respectively. Net income increased 3% year-on-year to $346 million, indicating that the firm remained profitable.
Bear Market to Blame
Vladimir Tenev, CEO of Robinhood, said that market fluctuations were to blame for the decline in crypto revenue and trading volume, but he also said that the firm is concentrating on developing crypto infrastructure and incorporating assets with “real-world utility.”
During the down market, several trading platforms have increased their blockchain-based products, including Robinhood, in an attempt to attract more retail customers and generate more income.
With a record 8.8 billion event contracts exchanged on Robinhood in Q1, a 780% increase from Q2 2025—its first full quarter on the market—Robinhood Predictions, another one of these services, is a prediction market platform connected via Kalshi.
According to Tenev, Robinhood Predictions is expected to achieve a trading volume of around $3 billion in April. This would be the second-highest month since the product was launched in March 2025. Part of Robinhood’s “other” trading segment, Robinhood Predictions helped overcome crypto-related losses in Q1 with a 320% year-on-year revenue rise to $147 million.
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